Naval Group and the Commonwealth of Australia have today confirmed that at least 60 per cent of the contract value for the 12 new Attack Class submarines will be spent in Australia, and included their joint commitment in the program’s Strategic Partnering Agreement.
Inclusion in the Strategic Partnering Agreement follows Naval Group’s commitment to maximise Australian content in the design and build of the Attack Class submarines, and its offer in 2020 that a local spend of at least 60 per cent be formally signed into the program contract.
Naval Group global CEO Pierre Eric Pommellet visited Australia last month, and met with Commonwealth officials for talks on matters including the joint 60 per cent agreement.
“Naval Group is fully committed to supporting the development of Australia’s sovereign submarine capability," Pommellet said today. “I have been very impressed by the existing capacity of Australia’s manufacturing sector, and its enthusiasm for the Attack Class project.
“This program will deliver to the Royal Australian Navy 12 regionally-superior Attack Class submarines which are specially designed for Australia’s unique conditions.
“But it will also create a new and sovereign submarine building industry in Australia. Strong local supply chains will ensure that Australia has new self-reliance in this critical defence capability.”
Naval Group Australia CEO John Davis said his staff were already working with hundreds of local businesses to build greater self-reliance and sovereignty in the Australian defence manufacturing sectors.
“There will be increasing levels of local content in each of the 12 Attack Class submarines, as we continue working with local businesses to boost Australia’s sovereign capability,” Davis said.
“Ensuring that at least 60 per cent of the Attack Class contract value is spent locally will create hundreds of Australian jobs, for the long term, in new supply chains around the country.”
Naval Group Australia plans to double its local workforce in 2021 in preparation for the building of a hull qualification section at Osborne in 2023, and construction of the first Attack Class submarine pressure hull in 2024.
More than 120 companies in Australia have registered their interest with Naval Group to become tier-one capability partners and build major parts for the 12 new Attack Class submarines, in response to release of the first local manufacturing package that was worth almost $900 million.